Imagine walking by a store in a mall and your wireless device pings with 10 percent off e-coupon for that entertainment system you last looked at online last week but which you left in the cart. Or that you are at a concert and you get a ringtone containing a sample from a new track of a CD that the band is about to release but is pre-selling.

 

Wouldn’t that you make you stop and think ‘hmm maybe I should go in and check this out’? Or ‘OK let’s I’ll buy it and try it and if I like it maybe when the CD is cut I’ll get the others.’

 

Chances could be good that you may do just that, says research firm Frost and Sullivan. And if you’re in Europe the likelihood of getting pinged in this fashion, known as digital proximity marketing, is best if you are in the UK, but is spreading fast across the rest of the region. Though the technology is in its infancy, there are currently more than 35 providers of it.

 

Digital proximity marketing transports information using the Internet from a content management system which manages all the marketing and advertising campaign, to a content server which stores everything. Then through cellular networks, the information is delivered to access points, which are connected to the end users’ wireless devices through short-range wireless technologies, mainly Bluetooth, but also infrared, Wi-Fi, GPS, cell towers, and RFID.

 

The system is based on an opt-in model and so users receive information only if they want. The interaction forms it supports between users and the marketing campaigns are diverse: from simple messaging to audio clips through to short videos, e-vouchers, animations, java applications and ring-tones.

 

This technology creates a wide variety of opportunities for branding and advertising, says Frost. Companies are finding marketing potential at exhibitions where people pursue a specific interest. Being able to target the exhibition and generate information the consumer would be interested in directly to their mobile phone, is a brilliant way to market directly to target audiences. Concerts and festivals, as seen in the O2 Centre in London, are places where consumers can get information about artists and even download music. Museums and art galleries offer the opportunity to channel specific interactive forms of learning directly to those attending. Even bars and clubs offer a place to run a food and beverage campaign.

 

Malls and airports can install access points at their entrance to interact with travelers and shoppers directly. Taxi stands, bus and train stations are ideal locations for people who are waiting in transit to receive interactive marketing campaigns.

 

Already there are several companies who are succeeding in running campaigns for major brands at international events. Hypertag, Waymedia, and Bloozone are only three European digital proximity marketing companies who have been successful in this market says Frost. Hypertag, a UK-based company, has run campaigns worldwide for well known brands such as Ford and O2. Waymedia is an Italian digital proximity marketing provider that has run campaigns for MTV Italia. Bloozone, a German company, has run campaigns for Coca Cola, SAP (News - Alert), Chevrolet and Seat. The number of similar providers has grown significantly over the last two years.

 

 “The broad diffusion of short-range wireless technologies embedded in mobile phones has enabled interaction between mobile users and the surrounding environments,” explains Frost & Sullivan (News - Alert) Industry Analyst Saverio Romeo. “Systems of sensors can detect mobile phones in the short distance and send them information and data that could be useful to the final users. Digital proximity marketing uses this idea to enable digital marketing and advertising campaigns in places where the actual users are. When a consumer's position is close to the digital proximity marketing system, it is possible to provide content that the consumers want to receive and is related to brands and events close to the location of the consumers.”